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HISTORY OF GLOBAL MARKET INTEGRATION
I. The Agricultural Revolution and Industrial Revolution

Agricultural Revolution
 First big economic change.

 People learned how to domesticate plants and animals, which they think is more productive than hunter-gatherer
society.
 Led to major developments like permanent settlements, trade networks, and population growth.
Industrial Revolution
 Second major economic revolutions of the 1800.

 With the rise of industry came new economic tools, like steam engines, manufacturing, and mass production.
 Productivity went up, standard of living rose, and people had access to a wider variety of goods due to mass
production.
Economic Casualties of Every Revolutions:
1. Workers in the factories- who were mainly poor women and children- worked in dangerous conditions for low wages.
2. In the 19th century, labor unions began to form. These organization of workers sought to improve wages and working
conditions through collective action, strikes, and negotiations.
II. Capitalism and Socialism
 Two competing models that sprung up around the time of the Industrial Revolution, as economic capital became
more and more important to the production of goods.
1. Capitalism
 Is a system in which all natural resources and means of production are privately owned.
 Emphasizes profit maximization and competition as the main drivers of efficiency.
Adam Smith (1770s)
 “Invisible Hands of the market” when one owns a business, he is incentivized to be more efficient by improving
the quality of one’s product and reducing its prices.
 If one leaves a capitalist economy alone, consumers will regulate things themselves by selecting goods and
services that provide the best value.
2. Socialism
 In a Socialist System, the means of production are under collective ownership.

 Property is owned by the government and allocated to all citizens, not only those with the money to afford it.
 Emphasizes collective goals expecting everyone to work for the common good and placing a higher value on
meeting everyone’s basic needs than on individual profit.
Karl Marx
 Viewed socialism as a stepping stone toward communism- a political and economic system in which all members
of a society are socially equal.
III. The Information Revolution
 Technology has reduced the role of human labor and shifted it from a manufacturing-based economy to one that is
based on service work and the production of ideas rather than goods.
 We see the decline in union membership.
Service Industry
 Jobs such as administrative assistants, nurses, teachers, and lawyers.

Types of Jobs (based on social status and compensation that come with them):
1. Primary Labor Market Jobs
 Includes jobs that provide many benefits to workers.

 High income, job security, health insurance and retirement package.
 These are white-collar professions, like doctors, accountants, and engineers.
2. Secondary Labor Market Jobs
 Provide fewer benefits and include lower-skilled jobs and lower-service sector jobs.
 Tend to pay less, have more unpredictable schedules, and typically do not offer benefits like health insurance.
 Tend to have less job security.
IV. CORPORATIONS
 Key part of both our economic and political landscape.

 Are defined as organizations that exist ass legal entities and have liabilities that are separate from its members.
Trade Regulatory Groups (WTO) and Agreements (NAFTA)
 Regulates the flow of goods and services between countries.

 Reduce tariffs-taxes on imports, and make customs procedures easier.
 Makes trading across national borders much more feasible.
1. Global Corporations+
 Companies that of extend beyond the borders of one country.

 Called multinational or transnational corporations (MNCs or TNCs)
 Intentionally surpass national borders and take advantage of opportunities in different countries to manufacture,
distribute, market, and sell their products.
 Have significant role in the global economy.
 They influence the economy and politics by donating money to specific political campaigns or lobbyists.
Negative Effects of Globalization from Transnational Corporations:
 Trade does promote the self-interested agendas of corporations and give them autonomy.
 Influence politics and allows workers to be exploited.
Positive Effects of Globalization from Transnational Corporations:
 Better allocation of resources.

 Lower prices for products.
 More employment worldwide.
 Higher product output.
Cultural Changes from International Trade:
 Diffusion- Cultural practice and expressions are also passed between nations, spreading from group to group.
International trade and global corporations, along with the internet and global processes, contribute to globalizations
because people and corporations bring their own beliefs, their traditions, and their money with them when they interact
with other countries. These ideas and capital can then be incorporated in other countries, and thus, change the cultures and
economies of these foreign nations.

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HISTORY OF GLOBAL MARKET INTEGRATION

I. The Agricultural Revolution and Industrial Revolution

 First big economic change.

 Second major economic revolutions of the 1800.

 In a Socialist System, the means of production are under collective ownership.

 Jobs such as administrative assistants, nurses, teachers, and lawyers.

 Includes jobs that provide many benefits to workers.

 Key part of both our economic and political landscape.

 Regulates the flow of goods and services between countries.

 Companies that of extend beyond the borders of one country.

 Better allocation of resources.

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